Argentina’s Congress Passes Legislation to Regulate Virtual Wallets Impacting 10 Million Citizens

Advancing Crypto Regulation to Align with International Standards

The Argentine Senate has granted final approval to legislation establishing a registry of Virtual Asset Service Providers (VASPs) overseen by the National Securities Commission (CNV). This legislative move, affecting the operations of crypto exchanges and wallets, is aimed at meeting the minimum requirements outlined by the Financial Action Task Force (FATF), currently conducting a review of Argentina’s anti-money laundering and counter-terrorist financing measures.

Major Latin American crypto financial services provider Bitso sees this regulation as a step towards providing greater stability and security for both the industry and investors, contingent upon its effective implementation through ongoing dialogue between regulatory authorities and the private sector.

The newly enacted law signifies a reform of the national Anti-Money Laundering/Counter Financing of Terrorism (AML/CFT) framework, delineating the responsibilities of VASPs and placing them under CNV supervision as entities mandated to report to the Financial Information Unit (UIF). VASPs are now required to register with the CNV, adhere to specified corporate structures and business plans, implement robust AML/CFT measures, and safeguard user data.

The government asserts that a robust regulatory framework fosters enhanced legal certainty, bolstering confidence and providing effective tools to combat illicit activities, while also offering clarity on sectoral risks and public resource management. The majority of industry stakeholders, including the Argentine Fintech Chamber, view these regulations favorably, as they align with international standards and ensure transparency for the country’s estimated 10+ million crypto users.